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Board gender diversity and the capital structure of microfinance institutions: A global analysis

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  • Adusei, Michael
  • Obeng, Emmanuella Yaa Takyiwah

Abstract

As far as we know, the question of whether increasing gender diversity on boards of microfinance institutions carries any implications for their financing decisions has not been answered. To answer this question, we employ a global dataset from 441 microfinance institutions located in 69 countries to investigate the effect of board gender diversity on capital structure. A robust negative and statistically significant effect of board gender diversity on capital structure is produced by the three panel regression estimation techniques used in this paper. Our conclusion is that board gender diversity is a significant driver of MFI’s capital structure and that it decreases the gearing levels of MFIs and, by extension, lowers their exposure to bankruptcy risk.

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  • Adusei, Michael & Obeng, Emmanuella Yaa Takyiwah, 2019. "Board gender diversity and the capital structure of microfinance institutions: A global analysis," The Quarterly Review of Economics and Finance, Elsevier, vol. 71(C), pages 258-269.
    • Handle: RePEc:eee:quaeco:v:71:y:2019:i:c:p:258-269
    DOI: 10.1016/j.qref.2018.09.006
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    8. Aminat Olayinka Olohunlana & Ngozi Bosede Adeleye & Somod Dapo Olohunlana & Hauwah K. K. AbdulKareem, 2022. "Gender heterogeneity and microfinance sustainability in Sub‐Saharan Africa," African Development Review, African Development Bank, vol. 34(2), pages 232-243, June.
    9. Taghizadeh-Hesary, Farhad & Yoshino, Naoyuki & Fukuda, Lisa, 2019. "Gender and Corporate Success: An Empirical Analysis of Gender-Based Corporate Performance on a Sample of Asian Small and Medium-Sized Enterprises," ADBI Working Papers 937, Asian Development Bank Institute.
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